excel forumla

[rob]

I require help to write a formula that will calculate how
much I can borrow based on a certain monthly pmt.

I.e., if I know the term, interest rate, future value and
the pmt, I need the formula to tell me how much I can
finance.

I will then need to be able to change the pmt amount and
have that change the amount of the finance.

 

[JE McGimpsey]

One way:

=PV(rate,nper,pmt,fv)

Note that the rate payments, and number of periods must be in the same
units, so if you have a monthly payment, a term in years, and an annual
interest rate, you must adjust the latter two:

=PV(rate/12, nper*12, pmt, fv)

Note also that PV and pmt will be of opposite sign, so if you want a
positive PV, you'll need to make pmt a negative value.


n article <[email protected]>,

 

[JulieD]

and just further to Jim's reply you can use the tools / goal seek feature to
perform simple "what if" type questions on the formula - check it out in
Help and post back if you have any questions. (there are other tools you can
use for this if the goal seek doesn't provide you with enough flexibility)

Regards
JulieD

 

[Guest]

Thanks - Julie, problem with Goal seek is that I can not
automate it. I am building the spreadsheet for customers
and I want them to enter the data into minimal cells.
They would not know how to use goal seek. Any other
ideas?